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On Our Radar

Trump Victory Propels Military Stocks

Defense contractors rallied on the morning after Donald Trump became president-elect, a development that should bode well for the companies that supply the U.S. military with weaponry and technology.

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Lockheed Martin (LMT), the Pentagon’s largest contractor, jumped as much as 7.6% after the opening bell Wednesday. The stock was trading 4.7% higher at $250.38 later in the morning. Northrop Grumman (NOC) was up 4.9%, General Dynamics (GD) climbed 4.1% and Raytheon (RTN) led the way with a 6.3% gain.

Trump proposed a plan to expand the military by bringing the Army back to 540,000 active troops and building an Air Force of at least 1,200 aircraft, among other measures. Also under the Trump administration, the U.S. military could take a more active role in fighting ISIS.

As such, the defense contractors that performed the best Wednesday were makers of traditional firepower, including fighter jets, missiles and tanks.